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EU faces two tough months of bargaining to boost euro confidence

Published on Oct 22, 2012 7:05 AM

PARIS (REUTERS) - European Union (EU) leaders face two months of tough bargaining on money, power and the future governance of the euro zone before they can boost confidence that the existential threat to the single currency has faded.

The European Central Bank's pledge to buy the bonds of struggling euro zone countries in unlimited amounts has changed the terms of Europe's debt crisis.

Yet French President Francois Hollande may have been a little premature in declaring a turning point last week after another night of summit negotiation yielded a deal for a euro zone banking regulator to be launched next year.

"We are on track to solve the problems that for too long have been paralysing the euro zone and made it vulnerable," said Mr Hollande. "I again have confirmation that the worst is behind us."

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